Beware! HNTFX is an offshore broker! Your investment may be at risk.

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HNTFX is a licensed offshore broker with a name hard to pronounce and a logo that doesn’t impress. They put some efforts to be a regulated entity, but it’s certainly not enough, so we consider this broker unsafe to trade with. They offer some discouraging trading conditions we find totally inappropriate for retail customers. Find out why we cannot recommend this broker in the full HNTFX review.

 

HNTFX REGULATION AND SAFETY OF FUNDS

HNTFX lists a Dubai address claiming to be Vanuatu regulated. We can confirm it’s a licensed entity upon research, but it doesn’t make them is less risky. Quite the opposite, though. Vanuatu is an offshore jurisdiction with a bad reputation due to the lack of sufficient financial regulation. Recently, they took steps in the right direction by implementing specific requirements Forex brokers have to meet, but the customer protection is still very much in its infancy. The only significant measure undertaken is the minimum capital requirement raised to 50 000 USD back in 2017. Your funds are not safe if you deposit with HNTFX, notwithstanding the Vanuatu license that they have.

Avoid HNTFX and trade with CySEC regulated (EU) and FCA regulated (UK) brokers. They place the customer protection on top of their priority list, not because they want to, but because they have to. In Europe, the Forex brokers have to comply with many strict rules laid out as customer protection measures, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts etc. But most importantly, deposit insurance funds are protecting the traders’ deposits. In Cyprus, you can claim up to 20 000 EUR in compensation, while in the UK the guarantees are of even up to 85 000 GBP per client. Each EU member state is compelled to operate similar insurance funds, seen as the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.

HNTFX TRADING SOFTWARE

HNTFX offers both MetaTrader4 and MetaTrader5 accounts to their clients. That’s beneficial for the traders because MT is the best retail FX trading platform globally. It’s reliable and easy to use, including sophisticated trading tools and features such as Expert Advisors, Automated Trading, Complex Indicators, and a marketplace with more than 10 000 trading apps at the moment.

The EUR/USD spread HNTFX provides is not good- 2.7 pips fixed. The Buy/Sell difference forms the trading costs and the lower rates make trading more affordable, also improve the profit potential. Most of the regulated brokers offer EUR/USD spread of 1 pip and below, so it’s easy to find legit competitive brokers to trade with.

Warning! The minimum leverage possible is 1:100– a level way too risky for the traders! The maximum allowed ratio with the starter account is 1:400– needless to say much riskier. Restricting the traders to only 4 ratios available certainly makes us raise a red flag! HNTFX pushes the traders into a dangerous environment!

The leverage is a powerful financial tool boosting the profit potential, but at the same time, the risks increase proportionally. If misused 1:400 might cause utter losses in a matter of minutes, if not seconds. Due to the risks involved the EU, UK and Australia (from 2021) forced a leverage cap of 1:30 as a customer protection measure, while Canada and the US agreed on 1:50. The tremendous risks aside, we do not recommend trading with 1:500 brokers also because most of these are low or non-regulated, i.e. unsafe to trade with. There are exceptions, of course- the Swiss brokers are not leverage restricted. However, Switzerland keeps scammers away by implementing different strategies- a license there cost 20 mln Swiss Franks (around 22.6 mln US dollars).

HNTFX DEPOSIT/WITHDRAW METHODS AND FEES

The minimum initial deposit is $100, which is in line with the regulated brokers. The funding methods are Credit/Debit cards, Wire Transfers, Skrill and Bitcoin payment via Coinbase. Traders need to know that Wires and Bitcoin payments are final and non-refundable. The best account funding method is a deposit via bank cards because the traders can file for chargeback 540 days after the transfer date, in case things go wrong.

Warning! The T&Cs and Privacy Policy documents are not suitable for a broker! In the picture below, you’ll observe that the whole Terms and Conditions page fits into A4! It’s disconcerting because critical conditions such as minimum withdrawal requirements, withdrawal fees, request processing time, inactivity fees and so on remain unknown for the traders. You shouldn’t commence trading unaware of the most critical provisions applicable!

Overall, HNTFX is a licensed offshore broker offering controversial trading conditions. They fail to specify the most important provisions, and it’s a solid reason alone to stay safe and avoid HNTFX.

HOW DOES THE SCAM WORK

A group of scammers usually operates many scam brokers, scam websites and call centres. Sometimes they simply rely on the quantity, by creating as many brokers and websites as possible. Then they would be waiting for traders and investors with little or no experience to bite. Nowadays, it’s cheap to create a fraudulent website, and it looks like a profitable strategy, as they carry on doing it.

Anonymous offshore companies are standing behind many fraudulent brokers. Jurisdictions such as the Marshall Islands, the Commonwealth of Dominica or St. Vincent, and the Grenadines are notoriously famous for not regulating their financial sectors adequately. The three mentioned do not even issue Forex broker licenses. It’s easy for scammers to quickly incorporate companies there and unlawfully sell Forex products and services on regulated markets such as the Europen, American or Australian ones. Lack of regulation equals lack of customer protection and safety, so even if the broker is not ill-intentioned, the traders remain vulnerable. That’s why you should always avoid offshore brokers, no matter the promises they make.

WHAT TO DO WHEN SCAMMED

Unfortunately, no one is immune to scam. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.

Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!

It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!

Share online your experience; it’s important to protect others, as well. Be responsible!

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